Financing College 101

2. Students use federal Stafford loans. These are fixed-rate loans with flexible repayment terms, and everyone, regardless of financial need, is eligible.

3. Students borrow no more than they expect to make at their first job. Financial aid expert Mark Kantrowitz (finaid.org) has found that when total debt exceeds your starting annual salary, the odds of defaulting go way up.

4. If the Stafford Loan limits ($5,500 to $7,500 for a dependent undergraduate) don’t cover what the student needs, don’t be tempted by private loans. Consider a school that’s a cheaper alternative.